Less Salaries Frozen

December 22, 2009 Taxation in USA

Coin StacksAccording to the latest survey, the number of corporations and organizations in the USA freezing salaries in 2009 has declined compared to 2008.

The Mercer’s 2009/2010 US Compensation Planning Survey Update, released December 21st, shows that in the suffering economic conditions 30 percent of employers froze salaries, but only 14 percent planned to continue to hold earnings in 2010. The report indicates that average pay rises of 3.2 percent were seen in 2009, and the planned pay increases for 2010 are expected to be 2.7 percent.

Variation by market group shows the biggest pay rises in 2009 were in the energy industry (3.4 percent) and service industries (3.2 percent). Compared to other industries, employers in the high-tech and consumer goods sector are projected to have the biggest increases in payments in 2010, at 3.0 percent. The average performance based bonuses in 2009 were 41 percent, and are expected to be 38 percent in 2010.

Loree Griffith, Principal of Mercer, commenting on the findings, said, “…employers are still juggling selective hiring with selective cuts in staff as they evaluate specific workforce needs”.

The survey was conducted across the USA, in November 2009 among 350 mid-to-large sized employers by the international consulting firm Mercer.

Photo by Darrren Hester